7.04 Review Personal Finance

Which is an example of an endorsement? Endorsement---statement of support for a product from a person other than the advertiser A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" C. The radio commercial ended with: "Let Soothe & Smooth take you away." C. The radio commercial ended with: "Let Soothe & Smooth take you away." D. Your next-door neighbor said that Oops-Away was the best stain remover on the market. D. Your next-door neighbor said that Oops-Away was the best stain remover on the market.

Which is an example of escape advertising? Escape---associating products with beautiful, adventurous settings to create the illusion of escape for viewers A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" C. The radio commercial ended with: "Let Soothe and Smooth take you away." C. The radio commercial ended with: "Let Soothe and Smooth take you away." D. The spokesperson said that Oops-Away was the best stain remover on the market. D. The spokesperson said that Oops-Away was the best stain remover on the market.

Which is an example of puffery? Puffery---exaggerated claims or descriptions intended to increase a product’s reputation or appeal; e.g., “great tasting”, “great hair” or “blondes have more fun” A. In the commercial, the subject wearing the advertised makeup took a lead role in the group. A. In the commercial, the subject wearing the advertised makeup took a lead role in the group. B. The ad read: "Use the latest and greatest, the best of the best, use On Cue deodorant." B. The ad read: "Use the latest and greatest, the best of the best, use On Cue deodorant." C. The designer clothing ad showed a slim, attractive young woman wearing a designer outfit. C. The designer clothing ad showed a slim, attractive young woman wearing a designer outfit. D. The spokesperson said: "No bad breath, no cold shoulders; stay fresh with Fresh mints." D. The spokesperson said: "No bad breath, no cold shoulders; stay fresh with Fresh mints."

Which is an example of a loss leader? Loss leader---item priced below retailer’s costs to attract customers to a store; often used in food stores A. Going to a cosmetics counter to pick up an advertised free gift, then finding that one must make a $25 purchase A. Going to a cosmetics counter to pick up an advertised free gift, then finding that one must make a $25 purchase B. Going first to a store because batteries were advertised two for the price of one, when most products are priced on the high side B. Going first to a store because batteries were advertised two for the price of one, when most products are priced on the high side C. Going to buy an advertised phone, finding that out of stock, then buying a higher-priced phone with extra features C. Going to buy an advertised phone, finding that out of stock, then buying a higher-priced phone with extra features D. Ordering the Monday night special in the restaurant before realizing that the price was the same as usual D. Ordering the Monday night special in the restaurant before realizing that the price was the same as usual

Which illustrates a consumer responding to coupons as an advertising and sales method? A. Being persuaded by a sales associate to purchase the cell phone with the most features A. Being persuaded by a sales associate to purchase the cell phone with the most features B. Buying a candy bar from the display next to the checkout counter B. Buying a candy bar from the display next to the checkout counter C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later D. Using a newspaper clipping to save $1.50 when purchasing cereal D. Using a newspaper clipping to save $1.50 when purchasing cereal

Which is an example of trendsetter advertising? Trendsetter---a message that, if you use this product, you will stand out from the crowd A. In the commercial, the subject wearing the advertised makeup took a lead role in the group. A. In the commercial, the subject wearing the advertised makeup took a lead role in the group. B. The ad read: "Use the latest and greatest, the best of the best, use On Cue deodorant." B. The ad read: "Use the latest and greatest, the best of the best, use On Cue deodorant." C. The designer clothing ad showed a slim, attractive young woman wearing a designer outfit. C. The designer clothing ad showed a slim, attractive young woman wearing a designer outfit. D. The spokesperson said: "No bad breath, no cold shoulders; stay fresh with Fresh mints." D. The spokesperson said: "No bad breath, no cold shoulders; stay fresh with Fresh mints."

Which illustrates a consumer responding to rebates as an advertising and sales method? A. Being persuaded by a sales associate to purchase the cell phone with the most features A. Being persuaded by a sales associate to purchase the cell phone with the most features B. Buying a candy bar from the display next to the checkout counter B. Buying a candy bar from the display next to the checkout counter C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later D. Using a newspaper clipping to save $1.50 when purchasing cereal D. Using a newspaper clipping to save $1.50 when purchasing cereal

Which illustrates a drawback of advertising--- getting misleading information? A. Ad photos making cold drinks look appealing, then buying an entire case for one person A. Ad photos making cold drinks look appealing, then buying an entire case for one person B. After seeing commercials that stressed a large selection, finding few items of interest B. After seeing commercials that stressed a large selection, finding few items of interest C. Clipping coupons from the paper every week before going to buy groceries C. Clipping coupons from the paper every week before going to buy groceries D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce

Which illustrates a consumer responding to placement of high-profit items in prominent places as an advertising and sales method? A. Being persuaded by a sales associate to purchase the cell phone with the most features A. Being persuaded by a sales associate to purchase the cell phone with the most features B. Buying a candy bar from the display next to the checkout counter B. Buying a candy bar from the display next to the checkout counter C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later C. Mailing in proof of purchase and receiving 10% of the purchase price two weeks later D. Using a newspaper clipping to save $1.50 when purchasing cereal D. Using a newspaper clipping to save $1.50 when purchasing cereal

Which is an example of bandwagon advertising? Bandwagon---attempting to sell a product by convincing consumers that everyone is rushing to use and enjoy this product; peer approval A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" A. The ad read: "Twenty thousand teens couldn't be wrong. Use Ace and get rid of acne!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" B. The ad read: "Use Fresh mouthwash. You'll be one of the 'In Crowd'!" C. The radio commercial ended with: "Let Soothe and Smooth take you away." C. The radio commercial ended with: "Let Soothe and Smooth take you away." D. The spokesperson said that Oops-Away was the best stain remover on the market. D. The spokesperson said that Oops-Away was the best stain remover on the market.

Which is an example of bait and switch? Bait and switch---retailer advertises a product, hoping to persuade customers to come and buy another product at a higher price; customer is often told the “bait” product is “sold out” A. Going to a cosmetics counter to pick up an advertised free gift, then finding that one must first make a $25 purchase A. Going to a cosmetics counter to pick up an advertised free gift, then finding that one must first make a $25 purchase B. Going to a store to buy home improvement supplies because batteries were advertised two for the price of one B. Going to a store to buy home improvement supplies because batteries were advertised two for the price of one C. Going to buy an advertised phone, finding that it is out of stock, then buying a higher-priced phone with extra features C. Going to buy an advertised phone, finding that it is out of stock, then buying a higher-priced phone with extra features D. Ordering the Monday night special in the restaurant before realizing that the price was the same as usual D. Ordering the Monday night special in the restaurant before realizing that the price was the same as usual

Which illustrates a benefit of advertising---that it helps save money? A. Ad photos making cold drinks look appealing, then buying an entire case for one person A. Ad photos making cold drinks look appealing, then buying an entire case for one person B. After seeing commercials that stressed a large selection, finding few items of interest B. After seeing commercials that stressed a large selection, finding few items of interest C. Clipping coupons from the paper every week before going to buy groceries C. Clipping coupons from the paper every week before going to buy groceries D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce D. Hearing ads on the radio and knowing exactly where to go for the best fresh produce

Which is an example of an unfinished comparison? Unfinished comparisons---claiming a product “works better” --- better than what? A. Sharon recognized her favorite brand of tea by the symbol on the package. A. Sharon recognized her favorite brand of tea by the symbol on the package. B. The ad for laundry detergent read: "Cleans faster, brightens longer." B. The ad for laundry detergent read: "Cleans faster, brightens longer." C. The commercial ended: "Double your pleasure, double your fun, with Double-Good Gum." C. The commercial ended: "Double your pleasure, double your fun, with Double-Good Gum." D. The movie star said she used Sheen shampoo every day. D. The movie star said she used Sheen shampoo every day.